Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Reporting

Our segment information for the three and six months ended June 30, 2020 and 2019 is as follows:

(Dollars in thousands)	Global Commercial Bank (1)			SVB Private   Bank			SVB Capital (1)			SVB Leerink (1)			Other Items (2)			Total
Three months ended June 30, 2020
Net interest income (loss)	$	484,969		$	18,644		$	5		$	(3	)	$	9,312		$	512,927
Provision for credit losses	(43,456		)	(4,585		)	—			—			(18,440		)	(66,481		)
Noninterest income (7)	133,474			670			21,450			163,817			49,437			368,848
Noninterest expense (3)	(241,343		)	(10,164		)	(8,256		)	(108,650		)	(111,223		)	(479,636		)
Income (loss) before income tax expense (4)	$	333,644		$	4,565		$	13,199		$	55,164		$	(70,914	)	$	335,658
Total average loans, amortized cost	$	30,472,414		$	4,035,940		$	—		$	—		$	2,003,805		$	36,512,159
Total average assets (5) (6) (8)	67,936,486			4,071,648			430,272			454,603			5,538,993			78,432,002
Total average deposits	65,090,982			2,119,983			—			—			705,416			67,916,381
Three months ended June 30, 2019
Net interest income	$	461,752		$	12,277		$	6		$	242		$	55,126		$	529,403
Provision for credit losses	(18,295		)	(853		)	—			—			(4,798		)	(23,946		)
Noninterest income (7)	157,605			686			40,059			67,000			68,400			333,750
Noninterest expense (3)	(206,902		)	(9,526		)	(7,883		)	(61,935		)	(97,276		)	(383,522		)
Income before income tax expense (4)	$	394,160		$	2,584		$	32,182		$	5,307		$	21,452		$	455,685
Total average loans, amortized cost	$	25,724,704		$	3,217,597		$	—		$	—		$	464,319		$	29,406,620
Total average assets (5) (6) (8)	53,965,699			3,247,557			373,167			410,279			2,703,784			60,700,486
Total average deposits	51,126,806			1,394,905			—			—			440,497			52,962,208
Six months ended June 30, 2020
Net interest income	$	948,805		$	33,808		$	26		$	198		$	54,227		$	1,037,064
Provision for credit losses	(237,867		)	(59,075		)	—			—			(13,019		)	(309,961		)
Noninterest income (7)	300,308			1,570			26,368			226,494			116,042			670,782
Noninterest expense (3)	(466,198		)	(20,254		)	(16,842		)	(170,687		)	(205,240		)	(879,221		)
Income (loss) before income tax expense (4)	$	545,048		$	(43,951	)	$	9,552		$	56,005		$	(47,990	)	$	518,664
Total average loans, net of unearned income	$	29,804,949		$	3,946,709		$	—		$	—		$	1,334,786		$	35,086,444
Total average assets (5) (6) (8)	64,870,536			3,982,024			438,737			469,126			5,659,162			75,419,585
Total average deposits	62,153,426			2,021,323			—			—			687,557			64,862,306
Six months ended June 30, 2019
Net interest income	$	907,628		$	24,258		$	12		$	684		$	109,707		$	1,042,289
(Provision for) reduction of credit losses	(45,100		)	131			—			—			(7,528		)	(52,497		)
Noninterest income (7)	310,465			1,196			64,904			135,117			102,444			614,126
Noninterest expense (3)	(404,147		)	(18,378		)	(13,665		)	(122,475		)	(190,521		)	(749,186		)
Income before income tax expense (4)	$	768,846		$	7,207		$	51,251		$	13,326		$	14,102		$	854,732
Total average loans, net of unearned income	$	25,264,010		$	3,152,104		$	—		$	—		$	484,046		$	28,900,160
Total average assets (5) (6) (8)	52,068,609			3,179,064			375,934			355,609			3,144,018			59,123,234
Total average deposits	49,371,589			1,442,803			—			—			532,788			51,347,180

(1) Global Commercial Bank’s, SVB Capital’s and SVB Leerink's components of net interest income, noninterest income, noninterest expense and total average assets are shown net of noncontrolling interests for all periods presented. Noncontrolling interest is included within “Other Items."

(2) The “Other Items” column reflects the adjustments necessary to reconcile the results of the operating segments to the consolidated financial statements prepared in conformity with GAAP. Net interest income consists primarily of interest earned from our fixed income investment portfolio, net of FTP. Noninterest income consists primarily of gains or losses on equity warrant assets, gains or losses on the sale of AFS securities and gains or losses on equity securities from exercised warrant assets. Noninterest expense consists primarily of expenses associated with corporate support functions such as finance, human resources, marketing, legal and other expenses.

(3) The Global Commercial Bank segment includes direct depreciation and amortization of $5.8 million and $4.8 million for the three months ended June 30, 2020 and 2019, respectively, and $11.3 million and $9.6 million for the six months ended June 30, 2020 and 2019.

(4) The internal reporting model used by management to assess segment performance does not calculate income tax expense by segment. Our effective tax rate is a reasonable approximation of the segment rates.

(5) Total average assets equal the greater of total average assets or the sum of total average liabilities and total average stockholders’ equity for each segment to reconcile the results to the consolidated financial statements prepared in conformity with GAAP.

(6) Included in the total average assets for SVB Leerink is goodwill of $137.8 million for the three and six months ended June 30, 2020 and 2019.

(7) For the three and six months ended June 30, 2019, amounts of client investment fees included in the line item "Noninterest Income" previously reported as "Other Items" have been correctly allocated to our reportable segment "Global Commercial Bank" to properly reflect the source of such revenue. The correction of this immaterial error had no impact on the "Total" amount of noninterest income.

(8)

For the three and six months ended June 30, 2019, amounts for average assets previously reported as "Other Items" have been correctly allocated to the reportable segments "Global Commercial Bank" and “Private Bank” to properly reflect the greater of total average assets or the sum of total average liabilities and total average stockholders’ equity for “Global Commercial Bank” and “Private Bank.” The correction of this immaterial error had no impact on the "Total" amount of average assets.